Is growth back? It sure seems like it. One-time highfliers such as TiVo (NASDAQ:TIVO) seem to blowing the market away on a regular basis.

More winners could be on the way. A survey of leading investment managers conducted by the Russell Investment Group says the growth rally will continue through the rest of the year. And Fidelity Magellan manager Harry Lange says growth isn't just good, it's cheap. "I am still convinced that this is the place to be and if anything ... I have been adding even more to growth stocks," Lange told Reuters.

Don't dump the downtrodden
Surely Lange's optimism draws from years of success with growth stocks as manager of Fidelity Capital Appreciation, which thumped the market during both the go-go years of the bubble and the ugly aftermath that ensued. But there's also more to it than that.

History, for one thing. Growth stocks did better than value for the six years between 1994 and 2000, when technology stocks soared. Value stocks have been on a roll since. Now, as earnings growth begins to show signs of slowing, fast movers unaffected by general economic malaise could return to prominence. That's why, when Lange took the helm of the Magellan fund, he dumped ExxonMobil and bought Google.

Funding growth
Then there's small growth go-getter UMB Scout Small Cap (UMBHX), which trailed the market by almost four percentage points in 2006. This year, Scout's Jason Votruba is betting on speedsters like drug development consultant inVentiv Health (NASDAQ:VTIV), technical software specialist Ansys (NASDAQ:ANSS), and biotech LifeCell (NASDAQ:LIFC), and his go-go style is throttling the S&P 500 as I write. (Street analysts expect these firms to boost earnings by more than 15% annually over the next five years.)

Be a rebel with a cause
Here at Fool HQ, we've begun to see the turn as well. Last summer, David Gardner's Rule Breakers portfolio was bleeding red. And the quest for the next Starbucks was stuck in the mud. No longer. Today, the portfolio is once again beating the market and features more than 10 stocks that have at least doubled, including Blue Nile (NASDAQ:NILE) and Suntech Power (NYSE:STP).

How did it turn around? My analysis points to three traits shared by our biggest winners:

  • A competitive advantage in an important, emerging market.
  • A sustainable business growing at an above-average pace.
  • Top-flight managers who have a clear vision for what they wish to accomplish.

As you seek the sort of multibagger returns that helped growth gurus like Peter Lynch and Philip Fisher make millions from thousands, remember these factors. And, in the meantime, if you're looking for ideas for how to take advantage of the current growth stock rally, click here to get 30 days of free access to Rule Breakers. We'll show you everything we're buying now.

This article was originally published on Nov. 14, 2006. It has been updated.

Fool contributor Tim Beyers didn't own shares in any of the stocks mentioned in this article at the time of publication. Blue Nile and Suntech Power are Rule Breakers recommendations. inVentive Health is a Hidden Gems pick. UMB Scout Small Cap is a Champion Funds pick. The Motley Fool's disclosure policy is a rebel with a cause.